Blackstone chief Stephen Schwarzman says market volatility, not dissatisfaction, is driving redemptions
In today’s roundup of regional news headlines, Blackstone’s CEO offers an explanation for surging redemptions in the firm’s non-listed REIT, and developer China Aoyuan reveals plans to sell a stake in its property services unit.
Blackstone Boss Says Financially Distressed Investors Driving REIT Redemptions
Blackstone chief executive Stephen Schwarzman said Wednesday that redemptions in his firm’s $69 billion non-traded REIT were driven by investors roiled by market volatility rather than dissatisfaction with the fund.
Blackstone shares have lost 15 percent of their value since 1 December, when the New York-based firm disclosed that it had for the first time limited redemptions from the REIT, which is marketed to high-net-worth investors rather than institutional clients like pension funds and insurance firms. Blackstone relies on the REIT for about 17 percent of its earnings. Read more>>
China Aoyuan Says It’s in Talks to Sell Stake in Services Unit
China Aoyuan Group has announced plans to put its stake in a listed subsidiary up for sale, as indebted Chinese developers struggle to raise cash amid rising debts and a prolonged market downturn.
The Guangzhou-based company posted a statement Monday on its official website, saying that it intends to sell a 29.9 percent stake in Hong Kong-listed property services unit Aoyuan Healthy Life Group by 19 December. Read more>>
TPG Leads Investment in $465M GLP-Backed Fund
Hidden Hill Capital, a private equity firm backed by GLP, has raised $465 million for a fund targeting the infrastructure for a generation of Chinese companies like Shein that are turning outward for growth.
The Hidden Hill Foundation Fund has started out with shares in six companies including J&T Express and JD.com unit JD Logistics, which its operator previously invested in. NewQuest Capital Partners, owned by the alternative asset manager TPG, is the fund’s lead investor alongside backers from North America, Asia and Europe, Hidden Hill said. Read more>>
Evergrande to Give Creditors Glimpse of Restructuring Plan
The developer at the epicentre of China’s property debt crisis appears to be inching closer to unveiling a restructuring blueprint, after a long delay that has frustrated investors and highlights their struggle in a country still relatively new to defaults.
China Evergrande is planning to meet with an ad hoc group of its dollar bondholders Friday to formally discuss a debt restructuring proposal, people familiar with the matter said. The meeting could mark a significant step towards more details of a keenly awaited restructuring plan, after the builder roiled markets late last year by defaulting on dollar bonds. Read more>>
China Mulls More Property Easing at Economic Meeting Next Week
Chinese authorities may further soften their stance on property policies at a key economic meeting next week after the Communist Party’s top decision-making body said it will seek a turnaround in the economy for 2023, according to people familiar with the matter.
The annual Central Economic Work Conference, where policymakers discuss next year’s goals including the GDP target and the budget deficit, will start on 15 December, according to people with knowledge of the arrangement, who asked not to be identified discussing private information. Read more>>
China to Expand REITs Pilot Programme Into More Fields
China will expand the pilot scheme for REITs to cover more fields, a senior official said Thursday.
Efforts will be expedited to develop REITs products in new energy, water conservancy, new infrastructure and other infrastructure fields, said Li Chao, deputy director with the China Securities Regulatory Commission. Read more>>
Property Woes Push China’s Young to Rent Instead of Buy
A few months after her wedding this year, Lilian Li moved from the southwestern Chinese city of Chongqing to an apartment near Beijing’s financial district.
But while Chinese newlyweds typically see property ownership as an essential next step after marriage, Li and her husband are instead renting a two-bedroom apartment in the capital for RBM 13,000 ($1,821) per month. Read more>>
China’s BoCom Agrees to Support 8 Property Firms
China’s Bank of Communications said Thursday that it signed strategic cooperation agreements to support eight property firms, responding to Beijing’s call to ease a severe liquidity crunch in the sector.
The bank said it will deepen cooperation with the property firms, including Longfor, Gemdale and Greentown, in terms of property development loans, loans for M&A deals and bond investments, according to a statement released by the lender. Read more>>
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